IP assignment

A signed agreement transferring ownership of work product to the company.

Example

Every founder, employee and contractor signing before they write a line of code.

Important

Without it, the company may not own its own product. This is the most common thing to blow up an otherwise fine due diligence.

Related terms

  • Due diligence — The investigation a serious investor or acquirer runs before completing a deal — financial, legal, technical, commercial.
  • Contractor vs employee — Two legally distinct ways of engaging someone, with different tax, control and IP implications.
  • Founders agreement — The document setting out equity split, vesting, roles, decision-making and what happens if a founder leaves.

Lessons that explain it

  • Owning your own product — The single most common thing to derail due diligence. If contractors built part of it without an assignment, you may not own it. (12 min)
  • The contracts you will actually need — Founders agreement, employment and contractor agreements, customer terms, privacy policy, NDAs. What each is for, and which ones matter. (12 min)
  • Due diligence — What investors check before wiring, and the four things that most often kill a deal at this stage. (12 min)
  • Contractor or employee? — Two legally distinct arrangements with different tax, control and IP consequences. Getting it wrong is a real risk. (12 min)
  • Hiring across borders — Contractors, employers of record and local entities. Three ways to employ someone abroad, with different costs and risks. (12 min)

All 176 terms in the Founder glossary